[Solved] Deflation is a situation in which -

McqMate

Q.	Deflation is a situation in which -
A.	The value of money is falling.
B.	The price of goods is increasing.
C.	The value of money is increasing.
D.	The price level is stagnant.
Answer» C. The value of money is increasing.
Explanation: Deflation is a situation where the prices of goods and commodities in a country go down. i.e., there is negative inflation. This is caused due to reduced supply of money/credit. Inflation reduces the real value of money over time; conversely, deflation increases the real value of money - the currency of a national or regional economy.

538

0

Do you find this helpful?

1

View all MCQs in

Discussion

No comments yet

Related MCQs

What do you understand by the term "deflation"?
The situation in which total revenue is equal to total cost, is known as -
The situation in which total Revenues equals total cost, is known as :
Stagflation refers to a situation which is characterized by -
The situation in which the same tax base is taxed more than once is called:
The economic situation in which only a single seller or producer supplies a commodity or a service is called:
An industry in which technical factors preclude the efficient existence of more than one producer. This situation is called:
The situation in which aggregate demand in the economy is growing at a rate reliable to lead to inflation is called:
Interms of economics, if it is possible to make someone better off without making someone worse off, then the situation is -
Bilateral monopoly situation is